That Sinking Feeling

NeedAdvicePlz

I've never been great with money but ive always worked and always seem to find a way to keep my head above water in the end and to claw it back. This time though, ive ended up in a mess and don't really know what to do.


I've got a total debt (excl. mortgage) of £14,671 which comprises overdraft, credit cards and a loan (originally taken out to consolidate previous debts).


One card (£3500) needs paying ASAP and in full as its work related.


Another card (£3300) is incurring nasty interest


The loan is costing me £200 a month which is bearable, but im finding that im emptying my overdraft before the end of every month, without paying much more than the minimum off my cards.


Where my house is concerned, I think im in a fairly good position, I believe its worth about £125,000 with a purchase price of £99,000 18months ago, when I borrowed 60K. My mortgage repayments are relatively low at about £260 a month.


What I would like to do is to consolidate everything into my mortgage but im not sure how to approach the bank with this, or how likely it is that they would accept it. It's true to say that the additional loan would be in part for home improvement, however, much of that improvement has already been done and is sat on a card.


Can anyone offer advice?


Thanks

hettiecarro

Hi
I would personally think very carefully before taking out a second mortgage on your home.
Firstly - your home is a priority and should be protected. All other unsecured debt can be managed over time.
Secondly - if you have already had a consolidation loan to sort your debts and have got back into a mess - would this happen again?
The best thing to do is to post an SoA (statement of affairs/accounts) and let the lovely DFW whizz kids pick the bones out of it.
Obviously you are concerned about the work related loan, so more detail regarding that would be helpful.
http://www.stoozing.com/calculator/soa.php

Use this link and make sure you include EVERYTHING - and HONESTLY on there. Then you'll be bombarded with help.